BFood revenue rises 6% in 4Q18 as Starbucks chain delivers the goods

By TMR

Berjaya Food Bhd (BFood) posted a 6% increase in revenue to RM160 million for the the fourth quarter ended April 30, 2018 (4Q18), from RM151.42 million recorded a year ago, helped by revenues from additional Starbucks cafes and same-store-sales growth in Malaysia.

Net profit for the company majority owned by tycoon Tan Sri Vincent Tan rose to RM837,000 from a net loss of RM3.3 million during the previous corresponding quarter.

BFood’s pretax prof it jumped 504% to RM5.97 million in 4Q18 compared to a pretax profit of just RM0.99 million a year earlier.

The company told Bursa Malaysia in an exchange filing yesterday that the group’s prof it from operations improved by 105%, mainly due to higher profit contributions from Starbucks’ operations in tandem with the higher revenue.

“There was no consolidation of the losses from PT Boga Lestari Sentosa, operator of the Kenny Rogers Roasters’ (KRR) operations in Indonesia following its disposal in the preceding quarter.

“The pretax profit increased accordingly in tandem with the increase in profit from operations,” the company said in a statement.

For full financial year ended April 30, 2018 (FY18), revenue rose to RM639.6 mi l lion compared to the RM605.44 million recorded in the previous financial year.

The higher revenue was contributed by the additional Starbucks cafes operating since the beginning of the financial year and same-storesales growth in Malaysia.

The company said profit from operations improved 30% due to higher contribution from Starbucks’ operations, lower losses from KRR’s operations in Indonesia and the cessation of the consolidation of PT Boga for the remaining five months of its financial year under review.

However, pretax profit was lower at RM19.4 million, compared to RM24.32 million in FY17, due to the exceptional loss arising from the disposal of PT Boga.

Net profit for the full year dropped to RM1.1 million compared to RM11.4 million the year before.

The board has recommended a fourth interim dividend of one sen single- tier per share in respect of FY18, to be payable on July 26, 2018.

The company said the total dividend declared for the financial year under review amounted to four sen singletier dividend per share.